JK Tyre to focus on replacement market, exports after reviewing sales growth

Indian tyre manufacturer JK Tyre & Industries (JK Tyre) is changing their business approach to focus on the replacement market, where the manufacturer has noticed promising growth recently, and exports, with regards to the US and Latin America. The production of tyres has so far been hindered by lockdowns that were implemented as a result of the coronavirus crisis and the domestic market is faring poorly as well.

Anshuman Singhania, Managing Director, JK Tyre, said, “We are redirecting our efforts: stabilisation of production capacities remains a primary goal internally and we expect to optimise it in the foreseeable future. For now, we have deferred all our expansion plans including our foreign subsidiaries and will review after few quarters.”

JK Tyre stated that they are operating their units at 70% capacity which seems to overcome the crisis period brought on by the pandemic. It has apparently led to the stabilisation of their production and supply chain. As for materials imported from China for production, the manufacturer has “alternative sources to ensure continuity of operations” and is not affected by the new import

“We have taken up various measures to reduce costs and overheads to maximise our profitability and have been working on conservation of cash by way of reduction in inventories and collection of receivables faster, to infuse liquidity,” Singhania said.